Question

Practice Problem 01 a, b1-b3 (Part Level Submission)

On August 31, the balance sheet of Whispering Winds Corp. showed Cash $10,000, Accounts Receivable $2,700, Supplies $600, Equipment $6,000, Accounts Payable $4,600, Common Stock $13,950, and Retained Earnings $750. During September, the following transactions occurred.

1.		Paid $2,200 cash for accounts payable due.
2.		Collected $1,650 of accounts receivable.
3.		Purchased additional equipment for $2,150, paying $900 in cash and the balance on account.
4.		Recognized revenue of $8,000, of which $2,950 is collected in cash and the balance is due in October.
5.		Declared and paid a $1,050 cash dividend.
6.		Paid salaries $2,050, rent for September $1,150, and advertising expense $200.
7.		Incurred utilities expense for month on account $260.
8.		Received $12,000 from Capital Bank on a 6-month note payable.

Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)

Answer 1